There is nothing sadder than seeing some outside forces- such as a fire, cyber attack or a hurricane destroying your business. These disasters can cause irreparable damage to your business. According to a recent study, between 50-60% of small businesses never reopen their doors after suffering from a disaster. More than 90% of businesses don’t reopen their doors for more than a year. While big companies have the resources and time to plan for a system recovery plan, many small businesses don’t know how to deal with such situations.
A disaster recovery plan is very important for any business. It is a document that tells how your business can recover from a disaster. Once you’re sure that your employees are safe, you can implement your recovery plan. A well-planned plan can save your business from going bankrupt. A well-structured recovery plan is important for your business survival.
There are many types of catastrophic events which can ruin your business. Sometimes only an extended power failure can make your business bankrupt. To avoid such a situation, consider following below steps in time of adversity:
Create a written disaster response plan
The most important step is to create a detailed plan in writing. Start by writing down all the possible scenarios like a power outage, fire or flood. Also, write down the effects of such events on your business. After that, write down a step-by-step plan that tells how to react to such disasters. Your plan must include:
- Who will be affected by the disaster?
- Who will execute the recovery plan?
- How to prevent loss of inventory and assets?
Then, create a list of resources which you need to execute your plan like:
- Equipment you need to run your business.
- Which employees are important for your business?
- Work locations in some other place.
- The contact information of authorities and officials.
Finally, store this written plan in your office. Make sure anyone can access it during the time of disaster. You should also provide proper training sessions to your employees so they can understand their role.
Create a working communication plan
Always keep a list of important email addresses and phone numbers for each employee working in your company. In the time of disaster, you need to predetermine who will communicate with other employees. Also, designate a member of every team to contact for important information. This information should be present in your written recovery plan.
Stockpile necessary office equipment
First, create a list of emergency supply kits for your workers that can save their lives in disasters like earthquake or flood. Make sure that those kits contain first aid, some cash, device chargers, and bottled water.
After that, create a list of important office equipment that you need to run your business. Concentrate on important items only which you use all the time. For example, computer, telephone, desk, and chair are very important for any business. Without these items, your business won’t be able to run.
Find alternate office space
After getting all the equipment, you need an office place to put them. Many business owners start finding alternate office space after some disaster. It will be very hard to find an office space after some catastrophic event. You should do your own research in advance. Hence, you need to find some alternative places where you can relocate your office.
You can do an agreement with your business friends to share their office space in time of disaster. If that doesn’t work, then you can relocate your office to your warehouse. It will be hard to work for some days, but it will definitely save you some money.
Check your insurance coverage
An insurance policy is a must for every business. But, many businesses insurance won’t be helpful in catastrophic events. First, review your current insurance policy. Make sure that there are no gaps in your policy that could prevent you from claiming your money. You should have sufficient coverage to pay for physical damages and indirect costs like the disruption of your business.
You can buy an additional insurance policy that protects your office against catastrophic events. These policies will protect your business from floods or earthquake.
Plan your budget
After reviewing your policy, you need to work on your budget. Calculate the cost to buy everything in your necessary office equipment list. Make sure that you have created this budget before any catastrophic event. This will save a lot of your valuable time. The time you will spend now will save you a lot of time in the recovery process later. You can provide the equipment list to your insurance company right after the event. Thus, you will receive your insurance check right after the disaster.
Report your losses to the SBA
The SBA or small business administration offers a lot of services to small businesses across the USA. They will provide you resources, advice, and aid to get your business back on feet. The business of any size can get up to $2 million to replace or repair damaged equipment. You can also use this money to shift your business to a new location. This $2 million loan will definitely help you in restoring your business.
Backup important data and records
In the internet age, data is everything. Your business can go bankrupt if you lose all the important records. Hence, it is important to back up your business important files and records. You can keep this backup drives safe in some deposit box or you can upload it on the cloud. It is better to keep two copies of your pc backup. The first copy must be uploaded to your cloud while the second copy must be kept at an off-site location. If the internet is not working, then you can use the off-site free backup to restore your important files.
Train your employees
After creating a perfect recovery plan, it is important to train your employees. You should train them several times a year to make sure that your plan is working as expected. Thanks to this training, your employees will already know what to do in catastrophic events. Instead of panicking, they can simply carry out the plan which you have already created. You can run several drills to improve the chances of success during an emergency situation. Make sure that you are recording every drill. This will help you in understanding the flaws of your plan. Hence, you can make important adjustments to your recovery plan.
You can use these steps to protect your business from catastrophic events. If you are not able to come up with a plan, then you should hire professionals from Bleuwire. We will help you in sketching out the perfect disaster recovery plan for you. It will be very hard for small businesses to sketch and carry out a recovery plan. In such cases, you should get help from a disaster recovery consultant like Bleuwire. They have years of experience in creating and implementing recovery plans. We can also help you to take backup of your full data. If you are hiring us, then you don’t need to worry about the recovery plan. We will make sure that your business gets restored after any disaster.